10:1 Split, 80% Dividend: Defence PSU Wins Orders Worth 1150 Cr, Buy For TP Rs 330

Large cap aerospace & defence sector company, Bharat Electronics Ltd (BEL) bagged orders worth Rs 1150 crore till date for the financial year 2024-25. Major orders consist of AMC of Akash, Missile System, Combat Management System for Ships, Missile Fire Control System for ships, Laser Range Finders, Communication Network Centre etc., according to its BSE filing. Today BEL share hit fresh 52-week high but witnessed decline of 0.93% to settle at Rs 294.35 per share.

The defence PSU on May 20 recommended a final dividend of Re 0.80 paise per equity share or 80% for the FY 2023-24. Bharat Electronics shares offered eye-popping returns of 31% in last 2-weeks and soared 110% in last 6-month. 5 leading analysts have recommended buy call to BEL share with highest target price set at Rs 330. More details below:

Bharat Electronics Recommends Final Dividend: As per the regulatory filing of BEL dated May 27, "Board of Directors of the Company at their meeting held on 201h May, 2024, inter alia, has recommended a final dividend of Re 0.80 /- per equity share (80%) of Re 1/- each fully paid-up for the financial year 2023-24 subject to approval by the shareholders in the next Annual General Meeting of the Company."

Bharat Electronics Share Performance: The 52-week high price of BEL share on BSE is Rs 303.35 per share (as on May 27, 2024) and 52-week low price is Rs 109.10 per share (as on May 26, 2023). The company has a market capitalisation of Rs 2,15,163.34 crore. The PE is 53.52 and ROE is 25.00. Bharat Electronics shares offered attractive return of 166% in last 1-year and gained 282% in last 2-years only. In last 3-years, BEL share surged 497% and 681% in last 5-years. The PSU's last 10-years return stand at 1747%.

Bharat Electronics Q4: The PSU declared a 30% year-on-year rally in consolidated net profit at Rs 1,797 crore for the quarter ended March 2024 as against the net profit of Rs 1382 crore for the corresponding quarter of last year. Revenue from operations surged 32% to Rs 8,564 crore for Q4 FY 2024 as compared to Rs 6479.12 crore for the similar quarter of last year.

For full FY24, BEL declared profit after tax (PAT) at Rs 3,984.52 crore, up 33.5% as against the PAT of Rs 2,984.42 crore registered for FY23.

Should You Buy BEL Share? Motilal Oswal believed BEL to remain a key beneficiary of defence indigenisation potential worth Rs 5 lakh crore for the next 5-years with its presence across defense platforms and products ranging from radars, simulators, EW systems, electronic fuses, thermal imaging, integrated air command and control system, border surveillance system and counter drone systems etc.

Motilal Oswal upgraded BEL share from neutral to buy with target price at Rs 310 per share. Nomura too is positive on BEL and assigned buy call with target price of Rs 300 per share. Sharekhan has recommended buy call to Bharat Electronics share with target price of Rs 325 per share. JM Financial has also recommended buy call on BEL shares, stating "outlook continues to remain strong". The analyst has given a target price of Rs 320. ICICI Direct has given buy call too with target price of Rs 330 per share.

BEL Bonus History: BEL's last bonus issue was announced in 2022 in the ratio of 2:1 implying shareholder received 2 bonus shares for every 1 share held. BEL share traded ex-bonus on September 15, 2022. Prior to this, BEL announced bonus shares in 2017 in the proportion of 1:10 and in 2015 in the ratio of 2:1 proportion.

Bharat Electronics Ltd Stock Split History: BEL split the face value of its shares once since March 16, 2017. Bharat Electronics last split the face value of its shares from Rs 10 to Re 1 in 2017.BELshare traded an ex-split as on March 16, 2017.

BEL Technical & Shareholding: FII/FPI have decreased holdings from 17.77% to 17.56% in Mar 2024 quarter. Number of FII/FPI investors increased from 1183 to 1261 in Mar 2024 quarter. Number of MF schemes increased from 300 to 321 in Mar 2024 quarter. Score is 73.86 indicating the stock is technically strong. Stocks with score above 70 are considered as technically Strong. RSI is 87.0, RSI above 80 is considered strongly overbought. This implies that stock may show pullback. MFI is 90.2, MFI above 80 is considered strongly overbought. This implies that stock may show pullback.

BEL Dividend History: Bharat Electronics declared 50 dividends since August 27, 2001. In last 1-year, BEL announced an equity dividend amounting to Rs 2.00 per share. At the current share price of Rs 294.35 apiece, Bharat Electronics share gives a dividend yield of 0.68%.

Disclaimer: The stock has been picked from the brokerage report of Nomura, Motilal Oswal, Sharekhan, ICICI Direct, and JM Financial. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.